Even though people may appreciate the benefits of small schools, too many think that the cost of such schools is prohibitive. To answer their concerns, Dollars & Sense summarizes research on the educational and social benefits of small schools and the negative effects of large schools on students, teachers, and members of the community, as well as the "diseconomies of scale" inherent in large schools. As the research shows, measuring the cost of education by graduates rather than by all students who go through the system suggests that small schools are a wise investment. In addition, Dollars & Sense answers two fundamental questions: can small schools be built cost effectively, and has anyone done so? Using data drawn from 489 schools submitted to design competitions in 1990-2001, Dollars &Sense answers both questions with a resounding yes, demonstrating that small schools are not prohibitively expensive. Investing tax dollars in small schools does make sense.